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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (11521)	12/13/1997 10:07:00 PM
From: Lazarus_Long	Read Replies (1) \| Respond to of 94695

I think Bill is the resiedent expert on bear coils, but I'll relate what I know. It is (I believe) the same as triangle or wedge. The chart looks like this: x x x x x x x x x x x x x x x x x x x x x x x x x The x'S are closing prices. While in the coil, each top and bottom stay within the bounds established by the previous oscillation. (It's a damped oscillation if that means anything to you.) When it breaks out of the coil the move is fast and strong. It is usually in the same direction that the stock was going before getting into the coil. A current example is KLIC. ADPT and AMAT have broken out of their coils on the downside. CPQ, KLIC, and XCIT may have also. Some links: iqc.com iqc.com iqc.com iqc.com iqc.com

To: Tommaso who wrote (11521)	12/14/1997 12:40:00 AM
From: bobby beara	Read Replies (2) \| Respond to of 94695

Hi Tommaso, GZ would better answer this, but I'll give it a wack. A bear coil is a fairly steep decline then a back and forth pattern the narrows like a coil. What this narrowing back and forth pattern shows is investor indecision on whether the stock should break to the upside or downside and the coil narrows to the point it either breaks one way or the other, usually dramatically. Since the coil was precided by a precipitous correction it is called a bear coil. MSFT had a dramatic bear coil off it's July 150 peak that tipped in the first week of August. Actually you could look at MSFT as a 6 month bear coil, with a head fake - exhaustion gap at the end. I don't think Billy will rule the world (he was looking a little ragged in the picture they took off him in Beijing in todays paper) - a 6 month coil will have a mighty nasty spring to it. Technologies do pass into oblivion - anyone use beta anymore -g- Click this link and tell the crystal ball what you think -gggg- home.sprynet.com Then scroll down and you can see the INDU and Nasdaq Chart (as of 12/5). The Nasdaq is a perfect example of a bear coil that has broken dramatically to the downside. (sorry noticed someone already anwered the question)

To: Tommaso who wrote (11521)	12/14/1997 8:28:00 AM
From: GROUND ZERO™	Read Replies (2) \| Respond to of 94695

Hi Tommaso, Please allow me to describe to you what a 'coil' is, since I believe I'm the trouble maker who began using that four letter word. A coil pattern looks like a spring. The trading range begins to narrow so that you have a development of higher lows and lower highs. If that pattern would continue, the chart would flatline like an EEG of one who just died. If this pattern develops on a spikedown after a major bull move, the coil is bearish. If this pattern develops on a spike up after a major bear move, the coil is bullish. The break out of the coil pattern is generally violent and stunning. These patterns are truly rare, but I see them almost everywhere these days in the NAZDAQ companys. If you look at the NAZDAQ chart, you will see that after many months of a rally, the market spiked down. That was the beginning of the coil pattern. Over the past several weeks, months, the trading range narrowed and stayed within that spike range. It's as if the market cannot make up its mind which way to go. There are generally five pivot points to the coil, the spike being the first pivot. The more pivot points you have, the tighter the coil. The tighter the coil, like a tightly coiled spring, the prices jump out of that pattern with that much greater vengeance. I hope that defines a coil for you. If anything I've just explained is not clear, please let me know. GZ